When the price of an inferior good falls the substitution effect?
Answers
Answered by
2
Explanation:
A plantation is the large-scale estate meant for farming that specializes in cash crops. The crops that are grown include cotton, coffee, tea, cocoa, sugar cane, sisal, oil seeds, oil palms, rubber trees, and fruits.
Answered by
3
hey.. ❤
This follows from the very definition of an inferior good: an inferior good is one the quantity demanded of which falls when income rises. In each case, the substitution effect serves to increase the quantity demanded as price falls and is partly offset by the negative income effect.
Similar questions